All Forum Posts by: James McCarthy

Thanks Chris. I did consider buying rental property, not this specific strategy so I'll have to look into it. As luck would have it, my employer did a 20% across the board pay cut shortly after I took the distribution, so now I have to figure out the tax implications of that too. Fortunately I did not leave the money sitting in a sweep and its been a great few weeks on the markets. I did confirm that I have until the end of the year to deposit it into a like account and avoid income taxes.

Thanks to everyone for the advice! I ended up taking the $100K distribution under the Cares Act with no penalty or withholding. I'm keeping it in a regular brokerage account until I figure out if I can roll it into my IRA. My accountant believes I can do it as a 60 day rollover, or possibly at any time before the end of the year under the Cares Act provisions, and avoid any income taxes. I have a few weeks to confirm but worst case it just goes back into the 401K.

I've been practically day trading in my 401K to reduce the losses from this mess, moving funds back and forth between stable value to stocks a few times a week. So far it has been working very well but one of my trades just violated the round trip rules in my plan and I got a warning. I still have a few available funds I haven't used so I can avoid another round trip for the time being, but not for long probably. My wife is a substitute teacher and she's basically out of a job until September. Can I get a hardship withdrawal of $100K from my 401k and avoid the 10% penalty under the Cares Act, then immediately deposit the money in an IRA and avoid the income taxes? Or will I still be subject to income taxes over 3 years if I don't put the money back into my 401k? We don't need the money. I'm just trying to create more flexibility to take advantage of the wild swings in the market lately. Any thoughts? Thx.

Thanks Chris, that makes sense. The bank didn't even do an appraisal so it must just be their valuation algorithm jumping around. I appreciate the explanation!

I'm in the process of doing a refi and have my rate locked. Every time I get a revised estimate statement during the underwriting process, the points have changed. They were initially 1.5%, a week later .5% and now .95%. I'm not really complaining since its still lower than I initially thought it would be, but I've never run into this before. Curious about why its happening.